Another Study Undermines White House Position on Minimum Wage and Job Loss

As part of his campaign to raise the minimum wage to $10.10, President Obama has assured Americans that there’s “no solid evidence” that a hike will cost jobs. Similarly, his chief economist told the press recently that “zero” was a reasonable estimate for the effect of a wage hike on employment.

These claims have always been factually questionable. One summary of the best studies on this subject since the early 1990s found that 85 percent of the research points to job losses after a minimum wage increase. The fact-checker at the Washington Post referenced this in the paper’s evaluation of the President’s “solid evidence” claim, and subsequently awarded him two “Pinocchios” for misleading rhetoric. Similarly, the Congressional Budget Office relied on this research consensus in its estimate that a $10.10 minimum wage would cause job loss.